In mergers financed by cash,the merger cost is not affected by the size of the merger gain.

Name: In mergers financed by cash,the merger cost is not affected by the size of the merger gain.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In mergers financed by cash, the merger cost is determined by the price paid per share multiplied by the number of shares outstanding. This cost remains constant regardless of the size of the merger gain. Therefore, the statement is true.

In Mergers Financed by Cash,the Merger Cost Is Not Affected